AT&T quarterly gain is below rivals'; defense plans call for bundled services

Article Abstract:

AT&T reported that earnings for 2nd qtr 1996 rose 10% to $1.49 billion, a performance well below that of its major long-distance rivals Sprint and MCI. AT&T revenue increased from $12.8 billion to $13.0 billion. The company admits that its inexpensive pre-paid phone cards and its efforts to attract long-distance customers from its rivals have not been successful. AT&T now plans to compete by bundling satellite TV, wireless, long-distance and local telephone services. AT&T will finish spinning off Lucent Technologies, distributing the 82.4% stake it holds in Lucent. Lucent's profit dropped to $72 million in 2nd qtr 1996, down from the $159 million earned in the same quarter in 1995. MCI's net income grew 15% from $260 million in 2nd qtr 1995 to a record $300 million in 2nd qtr 1996, and revenue increased from $3.7 billion to $4.6 billion, a 23% increase. Traffic volume was up 14.5%. Sprint closed the quarter with revenues of $3.5 billion and profits totaling $316.5 million.

AT&T Corp., T, Lucent Technologies Inc., MCI Communications Corp., MCIC, Company Sales/Revenue

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Operating income up at Sprint but it has overall quarterly loss

Article Abstract:

Sprint's income from continuing operations reached $278 million for 4th qtr 1995, but the company closed the quarter with a loss due to charge offs. The $278 million in income is an increase from the $207 million earned from continuing operations in 4th qtr 1994. Revenues for the quarter were $3.55 billion, up 10% from the $3.22 billion earned in the same quarter in 1994. The $343 million loss for 4th qtr 1995 is derived from a $565 million accounting charge and a $55 million restructuring charge. In 4th qtr 1994, the company had $7 million in profits from discontinued operations and a net income of $214 million. Sprint ascribes the positive pre-charge results to increases in data services, local telephone lines, international and residential long-distance services and more income from cellular services. Analysts believe Sprint will have lower revenues in 1996 and 1997 as it attempts to establish a wireless network across the US.

Company losses, Company earnings/profit

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Sprint, GTE and Ameritech show phone profit is strong

Article Abstract:

Sprint, GTE and Ameritech showed strong profits for 1st qtr 1996 as customers ordered more telephone lines for home offices, fax machines and Internet access. Sprint's earnings grew 37.8%, and its net income increased from $224.3 million in 1st qtr 1995 to $309.3 million in 1996. Revenues rose 9.4% from $3.08 billion to $3.37 billion. The number of local telephone lines supported by Sprint grew 5.1%. GTE's earnings were up 13.4%, and net income grew from $543 million in the same quarter in 1995 to $616 million in 1996. Revenue was up 6%, from $4.67 billion to $4.95 billion, which GTE attributed to an increase in the number of customers as well as of calls. Ameritech's earnings grew 14.2%, and net income was $478.3 million, up from the $578.9 million reported in 1st qtr 1995. Revenue grew 13.3%, from $3.15 billion in 1st qtr 1995 to $3.57 billion in the same quarter in 1996.

GTE Corp., GTE, AIT, Ameritech Corp.

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